China’s 2015 stock-market crash centered on the Shanghai Composite Index.
Chinese share prices had risen rapidly in late 2014 and the first half of 2015, with substantial participation by retail investors and widespread margin borrowing. After the market peaked in June, prices fell sharply as leveraged investors faced margin calls and confidence weakened.
The Shanghai Composite dropped by more than 30% between June and July 2015. A further global sell-off followed in August, when concerns about China’s economic growth and a change in the renminbi’s exchange-rate policy added to uncertainty.
The episode is sometimes called the Chinese stock-market crash, but it was not simply one day’s event. It consisted of several waves of turbulence from 2015 into early 2016. Chinese authorities responded with measures including trading restrictions, support for equities, and investigations into market activity.